Why is money still flowing to Daesh

Videos of Islamic State fighters driving brand-name S.U.V.s and pickup trucks in Syria, Iraq and Libya are graphic proof that efforts to squeeze the group financially have not done nearly enough. Now that the Obama administration’s program to train and equip anti-Islamic State fighters has ended in failure, there is even more reason to double down on efforts to choke off the group’s ability to raise funds and buy supplies, The New York Times said.

The Treasury Department is leading an international effort to disrupt trade routes, cut access to the international financial system, and impose sanctions on Islamic State leaders and anyone who assists them. Last week, the State Department offered a reward of up to $5 million for information that leads to a significant disruption of sales of oil or antiquities benefiting the group.

Administration officials say they are making progress in starving the Daesh of revenue and the ability to spend that money in world markets for military equipment and other supplies like oil production gear. But the sight of brand-name vehicles in the group’s convoys is a sure sign that something is awry, especially when Toyota, the manufacturer, says it has a policy of not selling to purchasers who might modify vehicles for terrorist activities.

American officials say the Islamic State generates most of its revenue within the territory it rules, beyond the reach of the usual counter-terrorism tools. Extorting civilians and businesses has brought in hundreds of millions of dollars, they say. Despite American efforts to cut off the group’s oil revenues, the most recent estimate is that ISIS earns about $40 million a month selling oil from fields in Syria and Iraq, with refined products going to local buyers, while crude oil is sold to middlemen and smugglers with customers in Iraq and Syria, including the Syrian regime, and beyond.

Source: MENA